Shopping mall operator Scentre Group has reaffirmed its forecast for full-year growth in funds from operations and said more than $500 million worth of developments had commenced in 2015.
Scentre today said its comparable Australian specialty store sales were up 5.8 per cent during the three months to March 31 and increased 4 per cent over the 12 months to March.
Comparable specialty store rent grew 2.4 per cent during the past year.
"We have seen an improving retail sales environment with 21 consecutive months of positive specialty sales growth in Australia," chief executive Peter Allen said.
Scentre said its portfolio remained 99.5 per cent leased, while speciality store occupancy cost has fallen 20 basis points from December to 18.2 per cent at the end of March
The group reaffirmed its full-year guidance for funds from operations to grow by 3.5 per cent to 22.5c per share.
Speaking at today’s annual general meeting, Scentre human resources committee chairman Brian Schwartz said salary and incentive frameworks for the senior management team were being reviewed.
Mr Schwartz said executive remuneration was determined with the help of independent experts, and Scentre decided that executives’ remuneration incentives should not be based on share price performance.
“Of course, the value of their equity-linked incentives is impacted by that share price movement but our primary objective is to reward the management team for sound operating performance and strategic decision making - not based on movements in the stock market,” Mr Schwartz said.
Scentre has also initiated plans requiring the chief executive and the chief financial officer to maintain a minimum holding of shares in the group, at least equal to a one-time multiple of their base salary.
This, Mr Schwartz said, helped align the interests of senior executives with those of shareholders.
Westfield Group and its associated passive property trust, WRT, were restructured in June to split the company's Australian and New Zealand operations from its growing international business.
Under the new structure, Westfield Corporation owns the international division, which includes flagship centres like Westfield London, while the Australasian shopping centres are controlled by Scentre.
Westfield chairman Frank Lowy said he was banking on a strong population increase in Australia to fuel growth at its local shopping centres.
Mr Lowy said Westfield was well placed to benefit Australia's population growth, after analysts last year questioned if he was more focused on the US and the United Kingdom.
"Our population today stands at about 23 million people," he told shareholders at the annual general meeting.
"And it won't be too many years before it hits the 30 million mark.
"These people will be shoppers, and they will be shopping at Westfield shopping centres."
- With AAP